Projectsformba.blogspot.com                       A PROJECT REPORT ON                  “COMPARATIVE ANALYSIS OF BANKS     ...
Projectsformba.blogspot.com                              ACKNOWLEDGEMENTI take this opportunity to express my deep sense o...
Projectsformba.blogspot.com                                DECLARATIONI hereby declare that the project report titled “__C...
Projectsformba.blogspot.com     Sr. No. Topics                                                             Page           ...
Projectsformba.blogspot.com                              EXECUTIVE SUMMARYThe objective of the project was to comparativel...
Projectsformba.blogspot.comFor the purpose of this research it was absolutely imperative for me to find out what theconsum...
Projectsformba.blogspot.com                                   INTRODUCTION        INDIAN BANKING SECTORThe Indian banking ...
Projectsformba.blogspot.comNew Business Opportunities:With the interest income coming under pressure, banks are urgently l...
Projectsformba.blogspot.com   INVESTMENT SCENERIO IN INDIAInvestments, unlike works of art, cannot afford the luxury of ex...
Projectsformba.blogspot.comAn investment can be described as perfect if it satisfies all the needs of all investors. So,th...
Projectsformba.blogspot.com  INTRODUCTION TO ULIPSUnit linked insurance plan (ULIP )is the Product Innovation of the conve...
Projectsformba.blogspot.comFeatures of ULIPULIP distinguishes itself through the multiple benefits that it provides to the...
Projectsformba.blogspot.com                              COMPANY PROFILESTANDARD CHARTERD BANKThe Standard Chartered Group...
Projectsformba.blogspot.comIn 1969, the decision was made by Chartered and by Standard to undergo a friendlymerger. All wa...
Projectsformba.blogspot.comStandard Chartered is well established in growth markets and aims to be the rightpartner for it...
Projectsformba.blogspot.com Current position Of Standard Chartered BankToday, the bank is a leading player throughout the ...
Projectsformba.blogspot.comEstablishment of Standard Chartered Bank around the world      Country        Year Established ...
Projectsformba.blogspot.comStandard Chartered retained Grindlays private banking operations in London andLuxembourg and th...
Projectsformba.blogspot.comOn 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percentof an Indian...
Projectsformba.blogspot.comThe name is derived from Standard & Chartered. Standard Bank of British South Africamerged with...
Projectsformba.blogspot.comSTRENGTHS OF STANDARD CHARTERED BANK:   •   Country’s largest international bank   •   ANY BRAN...
Projectsformba.blogspot.com   10.Building on number one position in previous FY 05-06 in new business the co. is      now ...
Projectsformba.blogspot.comIn the short span of time that they have been in existence, the leading new privatesector banks...
Projectsformba.blogspot.com       The Savings account is a transaction account wherein a deposit is placed with the       ...
Projectsformba.blogspot.com   • 2-in-1 AxcessPlus Account   • Debit Card       The main product of the bank is the Savings...
Projectsformba.blogspot.comOne can get instant cash at over 13,000 ATMs across India and over 8, 10,000 ATMsacross the wor...
Projectsformba.blogspot.com          ( > USD 50,000 @ Rs 1102/-)   • Pay-Order / Demand Draft facility at nominal charges ...
Projectsformba.blogspot.comParivar is much more than a regular Savings Account. It allows you maintain yourindividual iden...
Projectsformba.blogspot.com   Eligibility criteria   This account is available to individual Resident Indian customers.   ...
Projectsformba.blogspot.comAxcess Card: One gets an instant cash at over 13000 ATMs across India and over 8,10,000 ATMsacr...
Projectsformba.blogspot.comShopping Convenience   •   Purchase goods & services using money in your account   •   Accepted...
Projectsformba.blogspot.com                               Problem Definition:The main problem faced by the company was tha...
Projectsformba.blogspot.com                              OBJECTIVE OF THE STUDYThe Research project has been carried out t...
Projectsformba.blogspot.com                                     SCOPEThe Scope of the Research study would include the Geo...
Projectsformba.blogspot.com                              RESEARCH METHODOLOGYBank basically means business and in business...
Projectsformba.blogspot.com    Process adopted:   1. Gaining knowledge about the product:       Reading about the product ...
Projectsformba.blogspot.com           Step 7               The number of information needed is being                      ...
Projectsformba.blogspot.com  Research Design:  A two stage Research was conducted:1. Secondary Research:   Data was collec...
Projectsformba.blogspot.com                              MARKET PROFILE-DELHI Brief Demography of the City                ...
Projectsformba.blogspot.com                          MARKET PROFILE-GURGAON Brief Demography of the City                  ...
Projectsformba.blogspot.com                       PARAMETERS            UNIT          DESCRIPTION                        P...
Projectsformba.blogspot.com                        Population       Lac./Crores         1,73,542                          ...
Projectsformba.blogspot.comA pilot study was conducted to test these questionnaires. In this sample of 10 peoplewas picked...
Projectsformba.blogspot.com         segregated the people as per their intentions about the ULIP of Standard         Chart...
Projectsformba.blogspot.com   Versatility:   It is the ability of a technique to collect the information on the many types...
Projectsformba.blogspot.com                              FINDINGS OF THE STUDY    GENERAL FINDINGS•    GENDERWISE DISTRIBU...
Projectsformba.blogspot.com• AGEWISE DISTRIBUTIONAmong the 100 respondents, maximum respondents are from age group 21-30yr...
Projectsformba.blogspot.comPeople in general look for quality service from bank and then for a nearby location.Banking hou...
Projectsformba.blogspot.comThe survey shows that the ICICI bank is the most preferred bank ,covering 28% of thethe total p...
Projectsformba.blogspot.com•   SATISFACTION LEVEL OF SAMPLE :In general it is seen that people are satisfied with the serv...
Projectsformba.blogspot.com• AWARENESS ABOUT THE PRODUCTS OF STANDARD CHARTERED BANK:The Standard Chartered Bank has very ...
Projectsformba.blogspot.comModerate risk takers are 50%, this shows that they benefit from the Bull Run as well assafe cap...
Projectsformba.blogspot.com• DISTRIBUTION OF SAMPLE IN ACCORDANCE WITH THE PREFERNCE FOR   TIME HORIZON OF INVESTMENTOnly ...
Projectsformba.blogspot.com•   AWARENESS ABOUT ULIPs:Out of the sample size of 100, 40% of the respondents are unaware abo...
Projectsformba.blogspot.com• INVESTMENT IN ULIPS :In 100 respondents only 40% of them have invested in ULIPS. This shows t...
Projectsformba.blogspot.com                              TWO SCALE ANALYSIS:            •   RELATION BETWEEN INCOME & AGE ...
Projectsformba.blogspot.com• RELATION BETWEEN INCOME & AGE GROUP (31-40 YRS):For age group 31-40, majority of respondents ...
Projectsformba.blogspot.com•   RELATION BETWEEN INCOME LEVEL & AGE GROUP (41-50 YRS) :In age group 41-50 yrs majority of p...
Projectsformba.blogspot.comRespondents from age group above 50 yrs are majorly from the income group 3-5 lacks.In this age...
Projectsformba.blogspot.com• RELATION BETWEEN RISK PREFERNCE & AGE GROUP (31-40 YRS) :With this age Investors are more sen...
Projectsformba.blogspot.comSame trend is followed here also but the only difference is that No risk takers haveincreased f...
Projectsformba.blogspot.com• RELATION BETWEEN RISK PREFERENCE &OCCUPATION (BUSINESS)Survey shows that the business class p...
Projectsformba.blogspot.comResondents who are in private service are moderate risk taker.They invest for theirincome growt...
Projectsformba.blogspot.com•   RELATION BETWEEN RISK PREFERENCE & OCCUPATION ( PROFESSION):Survey shows that professional ...
Projectsformba.blogspot.comSurvey shows that althogh most of the respondents prefer moderate risk and moderatereturn strat...
Projectsformba.blogspot.com•   REASONS FOR INVESTMENT :Survey shows that income growth is the prime reason for the investm...
Projectsformba.blogspot.comIt is in time frame of 4-7 yrs that respondents feel that their Investment would doubleat the p...
Projectsformba.blogspot.com•   RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (41-50 YRS):Same trend is followed here .Only...
Projectsformba.blogspot.comRest of the time frame categories has followed the same trend. Same trend is followedhere with ...
Projectsformba.blogspot.com•   RELATION BETWEEN INCOME LEVEL & TIME HORIZON ( 4-7 YRS) :Income level above 5 lacs is the d...
Projectsformba.blogspot.comThose upto 2 lacs Income level wants their child’s marriage as the main benefit.5-7 lacs Income...
Projectsformba.blogspot.com•   RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL (UPTO 2 LACS):It includes businessmen and P...
Projectsformba.blogspot.comStrangely in this block also respondents seem risk averse as they demand no risk.But there is a...
Projectsformba.blogspot.comAround 35% of total population is moderate risk takers. They are either in Business orPrivate S...
Projectsformba.blogspot.com• AGEWISE PREFERNCE OF THE REASONS FOR THE INVESTMENT :In the age group 21-30 yrs, most of the ...
Projectsformba.blogspot.comFor Income level upto 2 lacs, Income growth is of paramount importance among allbenefits that U...
Projectsformba.blogspot.com      ESTIMATION OF MARKET POTENTIAL USING Z-TESTIn order to estimate the population proportion...
Projectsformba.blogspot.com      CONCLUSION ABOUT MARKET POTENTIAL OF ULIPS   1. Trust needs to be developed among the cus...
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
A project report on comparative analysis of banks and market potential of savings accounts in standard chartered bank
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  1. 1. Projectsformba.blogspot.com A PROJECT REPORT ON “COMPARATIVE ANALYSIS OF BANKS AND MARKET POTENTIAL OF SAVINGS ACCOUNTS” A Dissertation submitted to Standard Chartered Bank Prepared by:Projectsformba.blogspot.com Page 1 of 102
  2. 2. Projectsformba.blogspot.com ACKNOWLEDGEMENTI take this opportunity to express my deep sense of gratitude to all those who havecontributed significantly by sharing their knowledge and experience in the completion ofthis project work.I am greatly obliged to………………….., Director, I.S.C.S, Pune for providing me theright kind of opportunity and facilities to complete this venture.My first word of gratitude is due to …………………………., Area Sales Manager StandardChartered Bank, Branch – New Friends Colony, New Delhi, my corporate guide, for hiskind help and support and for his valuable guidance throughout the project. I amthankful to him for providing me with necessary insights and helping me out at everysingle step.My heartfelt thanks to my respected Faculty Guide namely ………………………. Withouther continuous help the project would not have been materialized in the present form.Her valuable suggestions helped me at every step.Finally, I would also like to thank all my dear friends for their kind cooperation, adviceand encouragement during the long and arduous task of preparing this report andcarrying out the project.At last but not the least, who are always at the top of my heart, my dear familymembers whose blessings, inspiration and encouragement have resulted in thesuccessful completion of this project. MBA-Marketing & FinanceProjectsformba.blogspot.com Page 2 of 102
  3. 3. Projectsformba.blogspot.com DECLARATIONI hereby declare that the project report titled “__COMPARATIVE ANALYSIS OFVARIOUS BANKS & MARKET POTENTIAL OF SAVINGS ACCOUNTS IN NCR__” at Standard Chartered Bank is my own work and has been carried out under theable guidance of …………………. , Area Sales Manager Standard Chartered Bank, Branch– NEW FRIENDS COLONY, New Delhi and ………………., Faculty, I.S.C.S,Pune. All carehas been taken to keep this report error free and I sincerely regret for any unintendeddiscrepancies that might have crept into this report. I shall be highly obliged if errors(if any) be brought to my attention.Thank You.Projectsformba.blogspot.com Page 3 of 102
  4. 4. Projectsformba.blogspot.com Sr. No. Topics Page no. 1. Executive Summary 5 2. Background of the Study 7 3. Company Analysis  Company Profile 13  SWOT Analysis 21 4. Problem Definition 32 5. Objective 33 6. Scope 34 7. Research Methodology 35 8. Market Profile  Delhi 39  Gurgaon 40  Noida 41  Greater Noida 42 9. Primary Data Collection Methods 43 10. Findings & Analysis - Graphical Analysis 47 - Test Estimation Of Market Potential Using z-Test 79 11. Conclusion 87 12. Recommendations 88 13. Limitations 93 14. References 94 15. Appendices 95Projectsformba.blogspot.com Page 4 of 102
  5. 5. Projectsformba.blogspot.com EXECUTIVE SUMMARYThe objective of the project was to comparatively analyze various banks and find themarket potential of ULIP’s (UNIT LINKED INSURANCE PLANS) in Delhi and NCR regions.Standard Chartered bank got the research carried out to find what the current trendsare in the market and what the competitor’s product offerings are. Also, market share ofdifferent banks was to be found and the recommendations to increase the market sharefor Standard Chartered bank were to be given. The purpose of the study is to find out the market potential of ULIP’s and position ofstandard chartered bank as compared to other banks. Standard Chartered Bank isinterested in finding out the sales potential of its ULIP’s. Specifically, the researchobjectives are to: • Gauge the consumer sentiment on the various services provided by the various banks in the city. • Identify areas of improvement on the various services provided by the bank • Determine the type of services needed by the consumers. • Identify the important and attractive attributes in services to retain the existing consumers. • Determine the type of banking parameters most popular with the consumer. • Identify the important characteristics that make the bank attractive to open a savings account • Evaluate the sales potential of Standard Chartered ULIP’s by the year 2010. • Gather and analyze the future aspirations of the customers with respect to the banking services and ULIP’s. • Rank and evaluate the relative importance the various banking parameters.For this purpose a primary research was conducted in the region of New Delhi and NCRregions. The target consumers were of various age –group, sex, monthly income andoccupation. The total field work was done for 40 days in which a total sample size of 100consumers was covered. The questions cover a wide range of issues including: • Identifying the types of accounts and Investments maintained by a consumer and whether he or she is happy with the services. • Obtain the likelihood of the respondent applying for a specific type of services while opening a Savings Account. • Determine the characteristics of the various banking features that are important for customerProjectsformba.blogspot.com Page 5 of 102
  6. 6. Projectsformba.blogspot.comFor the purpose of this research it was absolutely imperative for me to find out what theconsumers want from their banks. It was also necessary to find out the consumer’sprofile, i.e. his age, monthly income, occupation and sex and also the current bank withwhom he/she is banking. This required me to get a detailed questionnaire filled by theconcerned person. All the analysis in the report is drawn out of these questionnaires. Forcarrying out the competitor analysis further help was taken from bank websites andjournals. This research will provide Standard Chartered bank with information like thecurrent market share of banks and also a detailed analysis of the services offered byother banks and what are the most important criteria for selecting a particular bank. Thebank can also get data on prospective customers by designing its product offerings andmarketing strategy in a way so as to attract more clients in the near future.The following vital conclusions were derived: • Trust needs to be developed among the customers both as far as the ULIP as a product is concerned and also regarding private players (Standard Chartered) particularly in our study. • Some respondents despite of knowing about ULIP were hesitant to talk on it because they were not too confident about their knowledge. This very fact completely declines the concept of providing switches as a lucrative feature in ULIP (which is done by most of the companies). The reason is that very rarely people have the ability or time to use these features. • Awareness was missing. • Mainly high income group and business class people have accounts in standard chartered bank.Important Recommendations that were suggested are: • Building trust by providing the customers with adequate knowledge about the company and then the products. • Enhancing the level of awareness in terms of the company, their Partners and then the product and special emphasis among the female chunk of the population. • Using the Brand equity of Standard Chartered to promote Bajaj Allianz (Business assurance model) rather than doing it other way since brands like Bajaj are not enjoying the same image today what they did years back.Projectsformba.blogspot.com Page 6 of 102
  7. 7. Projectsformba.blogspot.com INTRODUCTION INDIAN BANKING SECTORThe Indian banking industry is going through turbulent times. With the lowering of entrybarriers and blurring product lines of banks and non-banks since the financial sectorreforms, banks are functioning increasingly under competitive pressures emanating fromwithin the banking system, from non- banking institutions, and from the domestic andinternational capital markets. India’s banking sector is growing at a fast pace. India hasbecome one of the most preferred banking destinations in the world. The reasons arenumerous: the economy is growing at a rate of 8%, Bank credit is growing at 30% perannum and there is an ever-expanding middle class of between 250 and 300 millionpeople (larger than the population of the US) in need of financial services. All thisenables double-digit returns on most asset classes which is not so in a majority of othercountries. Foreign banks in India achieving a return on assets (ROA) of 3%, their keeninterest in expanding their businesses is understandable. Indian markets provide growthopportunities, which are unlikely to be matched by the mature banking markets aroundthe world.Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks(that is with the Government of India holding a stake), 29 private banks (these do nothave government stake; they may be publicly listed and traded on stock exchanges)and 31 foreign banks. They have a combined network of over 53,000 branches and17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sectorbankshold over 75 percent of total assets of the banking industry, with the private and foreignbanks holding 18.2% and 6.5% respectively.In order to gain further access to the global trade, the government is expanding theFree Trade Agreements (FTA’s) with many countries (like Singapore, Thailand, and otherASEAN members). After the Comprehensive Economic Co-Operation Agreement (CECA)with Singapore, the government is now planning a similar deal with the 25-memberEuropean Union. The EU is also likely to ask India to liberalize its financial sector on thelines of the India-Singapore CECA.Projectsformba.blogspot.com Page 7 of 102
  8. 8. Projectsformba.blogspot.comNew Business Opportunities:With the interest income coming under pressure, banks are urgently looking forexpanding fee-based income activities. Banks are increasingly getting attracted towardsactivities such as marketing mutual funds and insurance policies, offering credit cards tosuit different categories of customers and services such as wealth management andequity trading. These are indeed proving to be more profitable for banks than plainvanilla lending and borrowing.Major foreign banks in India are as follows: • ABN-AMRO Bank • Abu Dhabi Commercial Bank Ltd. • American Express Bank Ltd • BNP Paribas • Citibank • DBS Bank Ltd • Deutsche Bank • HSBC Ltd • Standard Chartered BankProjectsformba.blogspot.com Page 8 of 102
  9. 9. Projectsformba.blogspot.com INVESTMENT SCENERIO IN INDIAInvestments, unlike works of art, cannot afford the luxury of experimenting. Investing isnot guesswork. It takes more than just a tip, it needs training to plan, instinct to pickand sheer intellect to make it work for the investor. Human nature is fickle, his wantskeep changing.Many individuals find investments to be fascinating because they can participate in thedecision making process and see the results of their choices. Not all investments will beprofitable, as investor wills not always make the correct investment decisions over theperiod of years; however, you should earn a positive return on a diversified portfolio. Inaddition, there is a thrill from the major success, along with the agony associated withthe stock that dramatically rose after you sold or did not buy. Both the big fish youcatch and the fish that get away can make wonderful stories.Investing is not a game but a serious subject that can have a major impact on investorsfuture well being. Virtually everyone makes investments. Even if the individual does notselect specific assets such as stock, investments are still made through participation inpension plan, and employee saving programme or through purchase of life insurance ora home. Each of this investment has common characteristics such as potential returnand the risk you must bear. The future is uncertain, and you must determine how muchrisk you are willing to bear since higher return is associated with accepting more risk.The individual should start by specifying investment goals. Once these goals areestablished, the individual should be aware of the mechanics of investing and theenvironment in which investment decisions are made. These include the process bywhich securities are issued and subsequently bought and sold, the regulations and taxlaws that have been enacted by various levels of government, and the sources ofinformation concerning investment that are available to the individual.An understanding of this financial background leads to three important general financialconcepts that apply to investing.Today the field of investment is even more dynamic than it was only a decade ago.World event rapidly-events that alter the values of specific assets the individual has somany assets to choose from, and the amount of information available to the investors isstaggering and continually growing.Projectsformba.blogspot.com Page 9 of 102
  10. 10. Projectsformba.blogspot.comAn investment can be described as perfect if it satisfies all the needs of all investors. So,the starting point in searching for the perfect investment would be to examine investorneeds. If all those needs are met by the investment, then that investment can betermed the perfect investment.Most investors and advisors spend a great deal of time understanding the merits of thethousands of investments available in India. Little time, however, is spent understandingthe needs of the investor and ensuring that the most appropriate investments areselected for him. SAVING BANK ACCOUNTBank savings accounts are a critical part of everybodys financial picture. If you need asafe place to keep money, a bank savings account is often a good choice. Here’s a quickreview of what savings accounts are and why you might want to have a bank savingsaccount.A bank savings account is a type of account designed to simply hold money that youdo not need immediate access to.Savings Bank Accounts are meant to promote the habit of saving among the citizenswhile allowing them to use their funds when required. The main advantage of SavingsBank Account is its high liquidity and safety. On top of that Savings Bank Accountearn moderate interest too. The rate of interest is decided and periodically reviewedby the Government of India. Presently, the rate of interest is 3.5% compounded halfyearly.Savings Bank Account can be opened in the name of an individual or in joint names ofthe depositors. Savings Bank Accounts can also be opened and operated by the minorsprovided they have completed ten years of age. Accounts by Hindu Undivided Families(HUF) not engaged in any trading or business activity, can be opened in the name of theKarta of the HUF.Projectsformba.blogspot.com Page 10 of 102
  11. 11. Projectsformba.blogspot.com INTRODUCTION TO ULIPSUnit linked insurance plan (ULIP )is the Product Innovation of the conventionalInsurance product. With the decline in the popularity of traditional Insurance products &changing Investor needs in terms of life protection, periodicity, returns & liquidity, it wasneed of the hour to have an Instrument that offers all these features bundled into one.ULIP is life insurance solution that provides for the benefits of protection and flexibility ininvestment. The investment is denoted as units and is represented by the value that ithas attained called as Net Asset Value (NAV). The policy value at any time variesaccording to the value of the underlying assets at the time. ULIPs attempt to fulfillinvestment needs of an investor with protection/insurance needs of an insurance seeker.ULIPs work on the premise that there is class of investors who regularly invest theirsavings in products like fixed deposits (FDs), coupon-bearing bonds, debt funds,diversified equity funds and stocks. There is another class of individuals who takeinsurance to provide for their family in case of an eventuality. So typically both thesecategories of individuals (which also overlap to a large extent) have a portfolio ofinvestments as well as life insurance. ULIP as a product combines both these products(investments and life insurance) into a single product. This saves theinvestor/insurance-seeker the hassles of managing and tracking a portfolio of products.Presently there are 200 plus ULIP Schemes in the market.ULIPs offer a variety of options to the individual depending on his risk profile. Forinstance, an individual with an above-average risk appetite can choose a ULIP optionthat invests upto 60% of premium in equities. Likewise, an individual with a lower riskappetite can select a ULIP that invests up to 20% of premium in equities.Projectsformba.blogspot.com Page 11 of 102
  12. 12. Projectsformba.blogspot.comFeatures of ULIPULIP distinguishes itself through the multiple benefits that it provides to the consumer.The plan is a one-stop solution providing:  Capital Appreciation  Life protection  Investment and Savings Flexibility  Adjustable Life Cover  Investment Options  Transparency  Options to take additional cover against  Death due to accident  Disability  Critical Illness  Surgeries  Liquidity  Tax planningProjectsformba.blogspot.com Page 12 of 102
  13. 13. Projectsformba.blogspot.com COMPANY PROFILESTANDARD CHARTERD BANKThe Standard Chartered Group was formed in 1969 through a merger of two banks: TheStandard Bank of British South Africa founded in 1863 and the Chartered Bank of India,Australia and China, founded in 1853.Both companies were keen to capitalise on the huge expansion of trade and to earn thehandsome profits to be made from financing the movement of goods from Europe to theEast and to Africa.The Chartered Bank • Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. • Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. • Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama. • Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. • In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Banks Cyprus Branches. This established a presence in the Gulf.The Standard Bank • Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863. • Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. • Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices. • In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.Projectsformba.blogspot.com Page 13 of 102
  14. 14. Projectsformba.blogspot.comIn 1969, the decision was made by Chartered and by Standard to undergo a friendlymerger. All was going well until 1986, when a hostile takeover bid was made for theGroup by Lloyds Bank of the United Kingdom. When the bid was defeated, StandardChartered entered a period of change. Provisions had to be made against third worlddebt exposure and loans to corporations and entrepreneurs who could not meet theircommitments. Standard Chartered began a series of divestments notably in the UnitedStates and South Africa, and also entered into a number of asset sales.From the early 1990s, Standard Chartered has focused on developing its strongfranchises in Asia, the Middle East and Africa using its operations in the United Kingdomand North America to provide customers with a bridge between these markets.Secondly, it would focus on consumer, corporate and institutional banking and on theprovision of treasury services - areas in which the Group had particular strength andexpertise.At Standard Chartered, success is built on teamwork, partnership and the diversity ofour people. At the heart of their values lie diversity and inclusion. They are afundamental part of their culture, and constitute a long-term priority in our theirs tobecome the worlds best international bank.Today they employ 73,000 people,representing 115 nationalities, and youll find 61 nationalities among our 500 mostsenior leaders. We believe this diversity helps to fuel creativity and innovation,supporting the development of exciting new products and services for our customersworldwide.Standard Chartered PLC is listed on both the London Stock Exchange and the StockExchange of Hong Kong and is in the top 25 FTSE-100 companies, by marketcapitalization. Following the acquisition of Korea First Bank, Standard Chartered nowemploys 38,000 people in 950 locations in more than 50 countries in the Asia PacificRegion, South Asia, the Middle East, Africa, the United Kingdom and the Americas.It serves both Consumer and Wholesale Banking customers. Consumer Banking providescredit cards, personal loans, mortgages, deposit taking and wealth managementservices to individuals and small to medium sized enterprises. Wholesale Bankingprovides corporate and institutional clients with services in trade finance, cashmanagement, lending, securities services, foreign exchange, debt capital markets andcorporate finance.Projectsformba.blogspot.com Page 14 of 102
  15. 15. Projectsformba.blogspot.comStandard Chartered is well established in growth markets and aims to be the rightpartner for its customers. The Bank combines deep local knowledge with globalcapability.The Bank is trusted across its network for its standard of governance and itscommitment to making a difference in the communities in which it operates. Type Public Founded 1853 Headquarters London, England, UK Key people E. Mervyn Davies CBE, Chairman, Peter Sands, Chief Executive Industry Banking Products Financial Services Revenue $11.067 billion (2007) Operating $4.035 billion (2007) income Net income $2.989 billion (2007) Employees 73,000 (2008) Website www.standardchartered.comProjectsformba.blogspot.com Page 15 of 102
  16. 16. Projectsformba.blogspot.com Current position Of Standard Chartered BankToday, the bank is a leading player throughout the developing world.Standard Chartered Bank is one of the three banks issuing banknotes for Hong Kong(Standard Chartered Bank (Hong Kong) Limited became a note-issuing bank from2004), the other two being the Bank of China (Hong Kong) and The Hongkong andShanghai Banking Corporation.The bank supports marathons in many cities, including London (The City Run), Jersey,Singapore, Dubai, Lahore, Mumbai, Hong Kong, and Nairobi.Standard chartered bank has its global presence in all over America, Asia, Africa,Middle east, and Europe.In its unique position as an international bank with strong franchise, Standard Charteredcombines an in-depth knowledge of local markets with global product expertise to offereffective financial solutions. The bank capitalizes on its onshore presence across Asia,Africa and the Middle East to offer customers convenient and reliable access to thewidest range of currency markets, to date local market information, country-specificglobal risk management strategies, and customized capital raising and liquiditymanagement solutions.Projectsformba.blogspot.com Page 16 of 102
  17. 17. Projectsformba.blogspot.comEstablishment of Standard Chartered Bank around the world Country Year Established Country Year EstablishedUnited Kingdom 1853 Australia 1964China, India, Sri 1858 Mexico, Oman 1968LankaHong Kong, 1859 Peru 1973SingaporeIndonesia, 1863 Jersey 1978PakistanPhilippines 1872 Brazil 1979Malaysia 1875 Venezuela 1980 Falkland Islands,Japan 1880 1983 MacauZimbabwe 1892 Taiwan 1985The Gambia,Sierra Leone, 1894 Cameroon 1986ThailandGhana 1896 Nepal 1987Botswana 1897 Vietnam 1990 Cambodia, SouthUSA 1902 1992 AfricaBangladesh 1905 Iran 1993Zambia 1906 Colombia 1995Kenya 1911 Laos, Argentina 1996Uganda 1912 Nigeria 1999Tanzania 1917 Lebanon 2000Bahrain 1920 Cote d’Ivoire 2001Jordan 1925 Mauritius 2002Korea 1929 Turkey 2003Qatar 1950 Afghanistan 2004Brunei, UAE 1958 Recent alliances and strategic acquisitionsIn 2000, Standard Chartered acquired Grindlays Bank from ANZ Bank, increasing itspresence in private banking and further expanding its operations in India and Pakistan.Projectsformba.blogspot.com Page 17 of 102
  18. 18. Projectsformba.blogspot.comStandard Chartered retained Grindlays private banking operations in London andLuxembourg and the subsidiary in Jersey, all of which it integrated into its own privatebank. This now serves high net worth customers in Hong Kong, Dubai, andJohannesburg under the name Standard Chartered Grindlays Offshore FinancialServices. In India, Standard Chartered integrated most of Grindlays operations, makingStandard Chartered the largest foreign bank in the country, despite Standard Charteredhaving cut some branches and having reduced the staff from 5500 to 3500 people.On 15th April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. Sincethen the bank has rebranded the branches as SC First Bank.Standard Chartered completed the integration of its Bangkok branch and StandardChartered Nakornthon Bank in October, renaming the new entity Standard CharteredBank (Thailand). Standard Chartered also formed strategic alliances with Fleming Family& Partners to expand private wealth management in Asia and the Middle East, andacquired stakes in ACB Vietnam, Travelex, American Express Bank in Bangladesh andBohai Bank in China.On 9th August 2006 Standard Chartered announced that it had acquired an 81%shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million. Thisdeal represented the first acquisition by a foreign firm of a Pakistani bank and themerged bank, Standard Chartered Bank (Pakistan), is now Pakistans sixth largest bank.On 22 October, 2006 Standard Chartered announced that it has received tenders formore than 51 per cent of the issued share capital of Hsinchu International Bank(“Hsinchu”). On completion of the offer, Standard Chartered will have majorityownership of Hsinchu, Taiwan’s seventh largest private sector bank by loans anddeposits as at 30 June, 2006.In 2006, Standard Chartered in Bangladesh, announced an alliance with Dutch BanglaBank Ltd to share their respective ATM operations.Projectsformba.blogspot.com Page 18 of 102
  19. 19. Projectsformba.blogspot.comOn 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percentof an Indian brokerage firm (UTI Securities) for $36 million in cash from SecuritiesTrading Corporation of India Ltd., with the option to raise its stake to 75 percent in 2008and, if both partners agree, to 100 percent by 2010. UTI Securities offers broking,wealth management and investment banking services across 60 Indian cities.On 29th February 2008, Standard Chartered PLC announced it has received all therequired approvals leading to the completion of its acquisition of American Express BankLtd (AEB) from the American Express Company (AXP). The total cash consideration forthe acquisition is US$ 823 million.The acquisition of AEB provides Standard Chartered with an opportunity to addcapability, scale and momentum in the strategically important Financial Institutions andPrivate Banking businesses. It will add 19 more markets to the Standard Charteredfootprint, while deepening presence in some core markets and providing access toseveral new growth markets.STANDARD CHARTERED BANK IN INDIAStandard Chartered Bank is the largest international banking Group in India with 78branches in 30 cities. The Bank is having a combined customer base of 2.5 million inretail banking and over 1200 corporate customers.The key businesses of Standard Chartered Bank in India include consumer banking -primarily credit cards, mortgages, personal loans and wealth management - and -wholesale banking, where the Bank specializes in the provision of cash management,trade, finance, treasury and custody services.Standard Chartered was the first to issue global credit card in India, the first to issuePhotocard, the first Picture Card and was the first credit card issuer to be awarded theISO 9002 certification.Some other product innovations of Standard Chartered Bank in India include theSapnay credit card, the international debit card that provides free access to over 1500Visa ATMs, a first in the banking industry, Mileage, an overdraft facility against thesecurity of a car and Smart Credit, a personal line of credit for salaried customers.Projectsformba.blogspot.com Page 19 of 102
  20. 20. Projectsformba.blogspot.comThe name is derived from Standard & Chartered. Standard Bank of British South Africamerged with Chartered Bank of India, Australia and China in 1969.BAJAJ ALLIANCE LIFE INSURANCE COMPANY ( PARTNER OF STANDARD CHARTEREDBANK )Bajaj Allianz Life Insurance Company was the No1. Pvt. Sector Life Insurance co. for theFY 2005-06. With a pan India presence and over 900 + offices, Bajaj Allianz LifeInsurance has already has a customer base of close to 2 million customers. Bajaj AllianzLife Insurance has developed insurance solutions that cater to every segment and age-income profiles. For companies it provides comprehensive Employee Benefit Solutions(Group Term Life, EDLI, Gratuity, Super-annotation, Key man Insurance and more); forthe individual Invest Gain (a unique life insurance plan where sustenance of income iscombined in the same plan that also pays a lump sum), Cash Gain (Money Back), ChildGain (Childrens plan), Risk Care (Pure Term), Lifetime Care (whole life), Term Care(term with return of premium), Saran Visitant (Retirement Plan), Protector (Mortgageterm insurance plan), New Unit Gain Super, New Family Gain, New Unit Gain Plus, NewUnit Gain, New Unit Gain Premier, New Unit Gain Easy Pension Plus, New Unit Gain EasyPension Plus – single premium. Currently Bajaj Allianz has a product portfolio of 30products and more need-based products are in the pipeline.It has followed Bancassurance Model which is the term used to describe the sale ofinsurance products in a Bank. The word is a combination of "banque or bank" and"assurance" signifying that both banking and insurance are provided by the samecorporate entity. The usage of the word picked up as banks and insurance companiesmerged and banks sought to provide insurance, especially in markets that have beenliberalized recently. It is a controversial idea, and many feel it gives banks too great acontrol over the financial industry.In this case Standard Chartered Bank is the distribution channel for Bajaj Allianz in Indiafor its ULIP Products. COMPANY ANALYSIS:Projectsformba.blogspot.com Page 20 of 102
  21. 21. Projectsformba.blogspot.comSTRENGTHS OF STANDARD CHARTERED BANK: • Country’s largest international bank • ANY BRANCH BANKING: Availability of any branch banking free of cost. • Around 150 years of emerging market experience. • CLIENT SOLUTIONS: Standard Chartered customizes Client Solutions for risk management, yield enhancement, liquidity management and debt financing. • HOME SAVER ACCOUNT: Along with the Home Loan, your will get a FREE current bank account into which you may deposit your monthly salary. STRENGHTS OF BAJAJ ALLIANZ 1. Bajaj Allianz Life Insurance declares Rs 63 cr (US $ 15.3 mn.) profit for FY 06-07. 2. Bajaj Allianz Life Insurance is the first large pvt. sector life insurance co. with a pan India network and strong retail focus to declare substantial profits for the financial year. 3. Bajaj Allianz Life is most profitable pvt. life insurer for 06-07. 4. Bajaj Allianz Life Insurance logs in Rs 4270 cr. (US $ 1.04 bn approx.) of new business premium. For the first time private life insurance cos. have crossed the US $ 1 bn new business in a FY. 5. Bajaj Allianz Life Insurance collected more new business premium in this one year alone, then the total of last 5 year’s new business (Rs 3821 cr.). 6. More policies issued in this one year then the total policies issued in the last 5 years (1.4 million policies). 7. Over 70% of the business was regular premium for the FY and in the month of March 07 over 80% of the business was regular premium. 8. Largest distribution network to reach the customers across the country with 2, 13,000 agents, 900 offices in 840 towns, 200 corporate agents & Banc assurance partners. 9. The Company announced a healthy profit of Rs 63 cr. for the FY 2006-07 as per the audited results. Excluding Participating funds profit the profit stands at Rs 54 Cr.Projectsformba.blogspot.com Page 21 of 102
  22. 22. Projectsformba.blogspot.com 10.Building on number one position in previous FY 05-06 in new business the co. is now no.1 in the Pvt. Sector in issuing largest number of Policies and becoming a truly mass retail company. WEAKNESSES OF BAJAJ ALLAINZ 1. The first weakness is that Bajaj have joined hands with Allianz as its partner, which is a setback for most of the customers who want to buy ULIPs don’t have full faith on the company. 2. They have to compete with the Government Companies like LIC and UTI who has been very established in this field. So they will have to attain the same trust of the public as it is in case of LIC and UTI. 3. The company is not doing any sort of work to make the general public aware about the ULIP as a product as it is in case of Mutual Funds and other financial Instruments. So, they will have to take a step forward to make the people aware about ULIP as well as the Schemes which they are having. PRODUCTS OFFERED BY STANDARD CHARTERED BANKThe Indian Banking system has seen sweeping changes over the years.Projectsformba.blogspot.com Page 22 of 102
  23. 23. Projectsformba.blogspot.comIn the short span of time that they have been in existence, the leading new privatesector banks have truly revolutionized banking in India. There focus on technology andcustomer convenience has brought about a paradigm shift in the banking business.While Standard Chartered Bank today has built stable business that it believes willdeliver sustainable value to its stake holders, there are also many existing opportunitiesfor further growth.The Bank’s operation can be subdivided into the following categories: SAVING ACCOUNTS PURPOSE AND DETAILProjectsformba.blogspot.com Page 23 of 102
  24. 24. Projectsformba.blogspot.com The Savings account is a transaction account wherein a deposit is placed with the bank for an unspecified period of time. The depositor can withdraw the money whenever required through any of the following means: • Cheques transfer • through an ATM (by ATM or ATM-cum-Debit cards), • standing instructions, • remittances, • VISA Money transfer, • IBFT or by making purchases made on a linked Debit Card at merchant establishments.Interest Paid: • Interest on the account is determined in accordance with directives of the Reserve Bank of India. • The current rate is 3.5%. • Interest is calculated on the Minimum Credit Balance between the close of the business on the 10th and the last day of each calendar month. • Interest is credited to the account every calendar quarter.Generic Value Preposition : • India’s leading international banking group • Best international bank branch network • 78 branches in 30 locations • Extended banking hours, 365 day banking • Fully functional phone banking facilities • Any branch banking, anywhere in India • Doorstep banking - bank from your home/office • Internet banking • IBFT - 15 locations, 253 banks • Visa Money Transfer • SCB Bill Pay facilitySAVING ACCOUNT PRODUCT OFFERING : • AxcessPlus Savings Account • SuperValue Savings Account • Parivar Savings AccountProjectsformba.blogspot.com Page 24 of 102
  25. 25. Projectsformba.blogspot.com • 2-in-1 AxcessPlus Account • Debit Card The main product of the bank is the Savings Accounts and its Insurance products.Accounts:Savings AccountA detailed and complete analysis of the product available under Savings account ispresented below: SAVINGS ACCOUNT AXCESS PLUS SARAL ACCOUNT PARIVAAR ACCOUNT 2-IN-1 ACCOUNT SUPER VALUE1 .Axcess plus: 1. AXCESS PLUS:Projectsformba.blogspot.com Page 25 of 102
  26. 26. Projectsformba.blogspot.comOne can get instant cash at over 13,000 ATMs across India and over 8, 10,000 ATMsacross the world through the Visa network. And get a globally valid Debit Card that letsone shop at over 55,000 outlets in India and at over 12 million outlets across the world.Eligibility: • Individuals, Clubs, Associations, Trusts, HUFs, Minors • Resident Indians and Foreign Nationals • Can be opened in a single name or joint names (to a maximum of three individuals) • Initial Deposit - Minimum 10,000/- Product: Entry level savings account • Positioning: A savings account that gives you the best access to your money • Average Quarterly Balance: Rs. 10,000 • Non-maintenance charge of Rs 1653/- if AQB < Rs 5000 • Non-maintenance charge of Rs 827/- if >Rs 5000 but < Rs 10000 • Key features: *Free access to cash at 13,000 VISA ATMs, using our debit card.* First four cash withdrawal transactions in a month.UNIQUE FEATURES: • Free access to cash at over 13,000 VISA ATMs in India • 4 cash withdrawals free every month from any VISA ATM • No. of SCB ATM’s in India – 161 • Multi-city Cheque book @ Rs 248 / 25 leaves • Globally valid Visa Electron debit card @ Rs 220 (1st year charges) • Any Branch / Multi-city Banking • 365 Branch Banking • 24 Hour Phone Banking • Foreign Currency Transactions (at designated branches) • Can be opened in a single name or joint names (to a maximum of three individuals) • Funds Transfer (Domestic and International) • Remittances up to USD 50,000 or equivalent value @ Rs 551/-Projectsformba.blogspot.com Page 26 of 102
  27. 27. Projectsformba.blogspot.com ( > USD 50,000 @ Rs 1102/-) • Pay-Order / Demand Draft facility at nominal charges through SCB and Correspondent Banks • Free quarterly statements and local Cheque book facility if the AQB is maintained • Interbank fund transfer (IBFT) & Visa money transfer (VMT) 2. SUPER VALUE: UNIQUE FEATURES : • Free globally valid Debit-cum-ATM card • Free Access to 6500 ATMs in India • Free Doorstep Banking • Free Payable at Par Cheque book/ account statements / DDs • Free Bill Pay. • Free Inter Bank Funds Transfer • Free Foreign Inward Remittance Certificates Other benefits of the Super Value account: • Globally valid debit card – one can make purchases at over 12 million merchant outlets and withdraw cash at over 810,000 ATMs worldwide using funds from your account • Multicity Banking - access the account even when one is out of town • Facility of extended Banking hours at all the branches, and Speed Cheque Clearing and Metro Clearing facilities • 24-hour branches, 365-day branches available at select locations • Phone banking - available 365 days a year on a 24-hour basis in the metros and everyday of the week at other centers • Internet banking - access and transaction of the accounts through the Internet from any part of the world • Free Investment Advisory Services to assist the customers in investing in a range of mutual funds. • Full suite of complimentary banking services including credit cards, loan products sand capital market services 3. Parivaar Account:Projectsformba.blogspot.com Page 27 of 102
  28. 28. Projectsformba.blogspot.comParivar is much more than a regular Savings Account. It allows you maintain yourindividual identity while allowing you to tap your familys financial strength. It also offersattractive insurance options to protect against unforeseen events and the facility ofSystematic Investment Plan (SIP), a unique long-term wealth-building tool. UNIQUE FEATURES : • One’s family can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts. • Anytime, anywhere access to accounts through ATMs, Phone Banking and Internet banking. • Option of Systematic Investment Plan (SIP), a well known long term wealth building tool that allows you to invest a fixed amount of money every month in specific mutual funds. This comes with a direct debit facility and avoids the need to remember dates and write Cheques every month. • Globally valid ATM-cum-debit card can be used at 55,000 merchant outlets in India and 12 million outlets worldwide. 4. Saral-No Frills Account: You can now open an account with Standard Chartered Bank, with an average quarterly balance of as low as Rs. 250. What’s more – you can avail of Anywhere Banking, by which you can access your account from any branch of Standard Chartered Bank in India. UNIQUE FEATURES : • Quarterly Average Balance, as low as Rs. 250. • ATM card & Debit Card available.. • 4 free transactions per month at any Standard Chartered Bank channel (Internet banking, Phone Banking, ATM & Branch). • Anywhere banking – Access your account from any branch of Standard Chartered Bank. • Access to Phone Banking and Internet Banking • Free Cheque deposit at any SCB Branch or ATM.Projectsformba.blogspot.com Page 28 of 102
  29. 29. Projectsformba.blogspot.com Eligibility criteria This account is available to individual Resident Indian customers. Account may be opened after being properly introduced in a manner approved by the Bank. 5. 2-in-1 Accounts:The 2-in-1 account gives you the facility of linking your fixed deposits with a savings orcurrent account. In case of any shortfall in the savings or current account, funds will beautomatically swept in from the linked fixed deposits, thus giving you a combination ofboth liquidity and higher returns. In case you need to withdraw amounts in excess ofwhat is available in your savings or current account, we will break your deposit for theexact amount you require. The rest of the deposit continues earning the original highinterest.UNIQUE FEATURES : • Earn fixed deposit interest rates • Enjoy the flexibility of a Savings or a Current Account • Free personalized Cheque book and Debit/ATM card • Flexibility of withdrawing money whenever you need it. Deposit more money in your account to earn a higher rate of interest by placing subsequent deposits • Phone Banking for account related information at your fingertipsGOLD CARD:Privilege access to Airport Lounges:The Standard Chartered Gold Card ensures your entry into exclusive airport lounges inDelhi, Chennai, and Kolkata. Customer privileges also include complimentary non-alcoholic beverages and snacks. The Gold card is given free with the Savings Account.DEBIT CARDS:Projectsformba.blogspot.com Page 29 of 102
  30. 30. Projectsformba.blogspot.comAxcess Card: One gets an instant cash at over 13000 ATMs across India and over 8,10,000 ATMsacross the world through the Visa network. One also gets a globally valid Debit Cardthat lets one shop at over 55,000 outlets in India and at over 12 million outlets acrossthe world.UNIQUE FEATURES : • Free Axcess to cash anytime, anywhere, across India. • Phone banking, Internet banking, Multicity banking, 365days branches, extended banking hours, lockers facility and doorstep banking. • One can even add-on for the loved ones with the joint account facility. • Choice of photo, non-photo and picture cards.Smart FillUNIQUE FEATURES : • Earn reward points every time you use the card to make purchases ANYWHERE, which you can then redeem for fuel at select Bharat Petroleum outlets. • When you use the card to make purchases at select Bharat Petroleum outlets, you dont have to pay the 2.5% surcharge levied on most credit or debit cards. • Smart fill Debit Card is globally valid. It gives you access to 12 million merchant establishments worldwide and over 55,000 in India • You can access over 6500 ATMs in India for FREE* and over 810,000 ATMs worldwide through the Visa ATM network • The card gets you an exclusive discount of 5% at select In & Out stores at Bharat Petroleum outlets, besides benefits at leading retail outlets and restaurantsUnparalleled Account AccessUnparalleled Cash Access: • Free access to cash through over 13,000 Visa network ATMs in over 100 cities in India • Access to over 810,000 ATMs worldwideProjectsformba.blogspot.com Page 30 of 102
  31. 31. Projectsformba.blogspot.comShopping Convenience • Purchase goods & services using money in your account • Accepted at over 65,000 merchant outlets in India • over 12 million merchant outlets globally • use your card at any merchant that displays the signULIP (Unit Link Investmentp- Plan)Capital Unit gain is a unit linked endowment regular premium plan that is designed tosuit all your insurance & investment needs.UNIQUE FEATURES : • You can choose any sum assured between minimum and maximum limits to match your insurance needs. • You have the option to choose from a host of additional rider benefits: UL Accidental Death Benefit, UL Accidental Permanent Total/Partial Disability Benefit, UL Critical Illness Benefit and UL Hospital Cash Benefit • You can increase your savings by paying top up premiums. • You get the same premium allocation for all policy years with higher allocation for top up premiums. • You can adopt your own investment strategy to grow the funds under your policy • Choice of 5 investment funds with flexible investment management, you can change • Funds at any time and invest in the newer funds that would be introduced from time to time. • You can make partial withdrawals without any surrender charge. Flexibility to increase / decrease the regular premiums.Projectsformba.blogspot.com Page 31 of 102
  32. 32. Projectsformba.blogspot.com Problem Definition:The main problem faced by the company was that it had a very less customer base .Thebank’s own product had very less market as compare to its third party selling. The bankdoes a third party selling for all the investment products.So, the study which I had done has the following problems: 1. To identify critical factors that influences the buying behavior of individuals. 2. To know the customer acceptance of the services and Investment products like ULIP’s of Standard chartered bank in Delhi and NCR regions. 3. To asses the problem volume of future sales. 4. To analyze the consumer perception about the quality of the product, so that the steps can be taken to maximize the consumer satisfaction. 5. To find the position of Standard Chartered bank vis-à-vis it’s competitors. 6. To find the awareness regarding the ULIP’s. 7. To maintain and enhance the position further, the bank decided to have a thorough insight into Its Insurance products. As this industry depends upon the Investor perception of the product and their views towards the service provider, thus, the feedbacks from the customers become all the more important.Projectsformba.blogspot.com Page 32 of 102
  33. 33. Projectsformba.blogspot.com OBJECTIVE OF THE STUDYThe Research project has been carried out to aid the Standard Chartered bank inoffering services that the customer needs and also to improve on some of the existingservices of the bank.The objective of this project is to find out:  The Savings Account potential in today’s market scenario as a whole.  The Market Potential of Standard Chartered Bank’s Savings Account.  Comparing other banks with Standard Chartered on various banking parameters.  Trying to find out the various factors of saving account on which the bank lags/leads.  Finally to find the requirement of the customer by segmenting them on the basis of: o Age o Sex o Profession o Monthly Income  The ULIP, s (UNIT LINKED INVESTMENT PLANS) potential in today’s market scenario as a whole.  The Market Potential of Standard Chartered Bank’s ULIP’s.  Comparing other banks with Standard Chartered on various banking parameters.  Trying to find out the various factors of ULIP’s on which the bank lags/leads.  Finally to find the requirement of the customer by segmenting them on the basis of:  Age  Sex  Profession  Monthly IncomeAnalyzing the data as per the given objectives and finally reaching a conclusion and thefactors that the bank should consider in case of improving the savings account.Projectsformba.blogspot.com Page 33 of 102
  34. 34. Projectsformba.blogspot.com SCOPEThe Scope of the Research study would include the Geographic & Demographic region ofDelhi & NCR. The Sample of 100 has been taken from areas such as Commercial Complex & Officesin Connaught Place, Nehru place, Gurgaon ,Greater Noida & Noida. These areas havebeen identified to give the actual picture of the Banking behavior and Investmentpatterns of the Office goers who invest in such Instruments. PURPOSE OF THE STUDY:To maintain and enhance the position further, the bank decided to have a thoroughinsight into the Savings account and ULIP’s. As it is service industry, which dependsupon the customer perception of the product conception and their views towards theservice provider, thus ,the feedback from the customers thus become s all the moreimportant.The purpose of the undergone study is to study the Savings Account and ULIP servicesand its rates of different banks and evaluate the competitive position of Standardchartered so as to suggest ways to increase it’s market share.The Bank wants to strengthen its customer base by gathering information about themarket scenario for Savings Accounts and ULIP’s. Standard Chartered Bank needs toknow about the competitors’ moves and the customers’ preference in this sector.Projectsformba.blogspot.com Page 34 of 102
  35. 35. Projectsformba.blogspot.com RESEARCH METHODOLOGYBank basically means business and in business collection of raw data allows themanagers to see the real scenario and then take a decision as per the data obtained.There are several implications in this statement: • The bank gets a clear picture of the ULIP Market scenario. • They can examine the available information in the form of data to make a decision • They can even get a clear picture of the scenario or potential of the Savings Account and ULIP’s of their banks in comparison to other banks. • The information can only be gathered by data collection and then analyzing the available data. Therefore, it can be said that the data collection is an important part of the project. Data Raw numbers Information The projected objectives were considered and as per the requirement a market surveywas done.Procedure: The procedure that followed can be enlisted as below: • Reading about the product • Deciding on the objective to proceed. • Developing Survey instruments • Conducting personal interviews of different age-groups, sex, monthly income and occupation through a Questionnaire. • Finally analyzing the data of various Geographic areas and trying to study with the other players.Projectsformba.blogspot.com Page 35 of 102
  36. 36. Projectsformba.blogspot.com Process adopted: 1. Gaining knowledge about the product: Reading about the product was the first step undertaken. This gave not only in depth knowledge about what is been offered by other players but also proved useful while developing the questionnaire. 2. Steps in the Development of the Survey Instruments The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below: Step 1 Research objectives are being transformed into information objectives. Step 2 The Appropriate data collection methods have been determined Step 3 The information required by each objective is being determined. Specific Questions/Scale Measurement format is Step 4 developed. Question/Scale Measurements is being evaluated. Step 5 Research objectives are being transformed into Step 6 information objectives.Projectsformba.blogspot.com Page 36 of 102
  37. 37. Projectsformba.blogspot.com Step 7 The number of information needed is being determined. The questionnaire and layout is being evaluated. Step 8 Revise the questionnaire layout if needed. Step 9 Step The Questionnaire format is being finalized. 10 3. Customer Survey: The people play an important part as a clear perception of people about the product can be estimated and known. Studying the need levels of the people regarding the Insurance product can be observed. It was very useful in knowing about the requirements of the people. 4. Referred to brochures and websites of competitors: To understand the competitors product brochures and websites of various players were referred and a competitive analogy of all the information is been made.Projectsformba.blogspot.com Page 37 of 102
  38. 38. Projectsformba.blogspot.com Research Design: A two stage Research was conducted:1. Secondary Research: Data was collected from websites and catalogues to understand the product of the different players2. Primary Research: A Primary Research was conducted: The questionnaire was prepared for the companies and following areas covered: • competing banks • Features offered by different banks • Consumer profile • Satisfaction level • Reasons for their invesment • Desirable features of the product.Sampling Plan:Elements: The target population of the study included the general population above the age of 21 yrs. It will further be based on Stratified Random Sampling.Sample size: 100 people.Projectsformba.blogspot.com Page 38 of 102
  39. 39. Projectsformba.blogspot.com MARKET PROFILE-DELHI Brief Demography of the City PARAMETERS UNIT DESCRIPTION Population Lac./Crores 15,412,000 Area Sq km 1,483 sq km 2 Literacy Rate % 81.82 % Literacy Rate – % 83.63% Male Literacy Rate – % 60.28% FemaleDelhi is the capital Of India and these days its hub for every industry. Delhi is one of theoldest continually inhabited cities in the world. Having been the capital of severalempires in ancient India, Delhi was a major city in the old trade routes from northwestIndia to the Gangetic Plains. Delhi is an important commercial center in South Asia.Delhi has a per capita income of 53,976 INR which is around 2.5 times of the nationalaverage. Delhis workforce constitutes 32.82% of the population showing an increase of52.52% between 1991 and 2001. Delhis service sector has expanded due in part to thelarge skilled English-speaking workforce that has attracted many multinationalcompanies. Key service industries include information technology, telecommunications,hotels, banking, media and tourism. Delhis manufacturing industry has also grownconsiderably as many consumer goods industries have established manufacturing unitsand headquarters in and around Delhi. Delhis large consumer market, coupled with theeasy availability of skilled labour, has attracted foreign investment in Delhi.General Characteristics of the Markets  Delhi is a densely populated medium sized city  Has a good youth population by virtue of the presence of several industries and other offices.  But there are only a few mid-sized markets and only few potential outlets  The markets are modern and developed.  There is sufficient awareness among consumers regarding new innovations in the field of commerce and industry.  Purchasing power of the territory is also good  The markets are small but moderately good.Projectsformba.blogspot.com Page 39 of 102
  40. 40. Projectsformba.blogspot.com MARKET PROFILE-GURGAON Brief Demography of the City PARAMETERS UNIT DESCRIPTION Geographical Area Sq. Km. 220 Population Lac.& Crore 5,73,542 Population Density Per Sq. Km. 331 77 % Literacy Rate % Population Literate.Gurgaon is a massive economic engine for Haryana and over 50% of Haryanas incometax comes from Gurgaon. So, there is a great potential for ULIPsGeneral Characteristics of the Markets:  Gurgaon is a huge market in terms of size and has around 25 market places  Few markets are pro middle class and few exclusively cater to the elite class  This city is an ideal combination of traditional culture and modernization  It has got a high purchasing power  Youth and old age person are found more in this city.  Mostly all the call centres of big MNCs are in this city. MARKET PROFILE-NOIDA Brief Demography of the CityProjectsformba.blogspot.com Page 40 of 102
  41. 41. Projectsformba.blogspot.com PARAMETERS UNIT DESCRIPTION Population Lac./Crores 293,908 Area Sq km 203.16sq km 2 Literacy Rate % 68 % Literacy Rate – Male % 74% Literacy Rate – % 61% FemaleNew Okhla Industrial Development Authority is a department of the government of UttarPradesh in Gautam Buddha Nagar District, India. Lately NOIDA has become a hub formultinational firms outsourcing IT services. Many large Software and BPO companieshave their offices in the city. Many other companies have their Indian branch offices inNoida, because of the Special Economic Zone, the better, suburbian atmosphere inNOIDA and its closeness to Delhi.General Characteristics of the Markets  The city makes for a good market place but the mostly there are small, crowded, traditional markets  There are many offices and many of the persons are working in these offices so this city has good potential for the product placement.  The persons here are much aware about the ULIPs than any other city.  But there are only a few mid-sized markets  The city and its consumers are growing up because of the growing industry. MARKET PROFILE-GREATER NOIDA Brief Demography of the City PARAMETERS UNIT DESCRIPTIONProjectsformba.blogspot.com Page 41 of 102
  42. 42. Projectsformba.blogspot.com Population Lac./Crores 1,73,542 Area Sq km 173.16sq km 2 Literacy Rate % 68 % Literacy Rate – Male % 74% Literacy Rate – % 61% FemaleGreater Noida is home to a number of Indian and foreign MNCs like HCL Technologiesand STMicroelectronics. It is also becoming a manufacturing hub with Companies likeHonda, LG, Moser Baer, Yamaha setting up their manufacturing facilities over here. Youcan get the complete information about Greater Noida in www.greaternoidaplus.com.There are a significant number of private educational institutions as well.Due to the presence of a large number of educational institutions, in the knowledge parkcampus is also one of the largest educational hubs of the India.General Characteristics of the Markets  There are many offices and many of the persons are working in these offices so this city has good potential for the product placement.  The persons here are much aware about the ULIPs than any other city.  But there are only a few mid-sized markets.  The city and its consumers are growing up because of the growing industry. PRIMARY DATA COLLECTION METHODData Collection Plan:The first of Research consisted of secondary data search from the following sources: • Catalogues • WebsitesIn this, information about different players, their features were collected.For the conclusive research, questionnaires were developed on the basis of secondarydata to gather information on the research objective.Projectsformba.blogspot.com Page 42 of 102
  43. 43. Projectsformba.blogspot.comA pilot study was conducted to test these questionnaires. In this sample of 10 peoplewas picked up from the target population on convenience basis, so as to determine thelimitation and deficiencies in the questionnaires.The final draft of the questionnaire (see Appendix) was then prepared on the basis ofthe observations from the pilot study. These were then finally filled by 280 consumers,for the conclusive study.Finally the data collected was fed into the data analysis software- SPSS, to be analyzedusing statistical techniques like: frequencies, means, Z-tests, t-tests, Chi squaredistribution, correlation of different variables, cross tabs etc.Types of Primary Data collected: • Socioeconomic Characteristics: socioeconomic characteristics are sometimes called “states of being” in that they represent the type of people. The factors on which we are working are age, sex and occupation. Monthly income is also an important parameter but it is difficult to verify. Although the amount of money that an individual earns in a month is an absolute, not a relative quantity but it is a sensitive topic in our society and it is difficult to determine. • Attitudes/Opinions: Through the questionnaire we have tried to get hold of individual’s preference, inclination and requirement from the products that the bank delivers to its Investors. Attitude is an important notion in the marketing literature, since it is generally thought that the attitudes are related to the behavior of individual. • Awareness/Knowledge: They are used in marketing research refers to what respondents do or do not know about the product. • Intentions: A person’s intentions refer to the individual’s anticipated or planned behavior. We have tried to find out through the collected primary data the intentions of the people in general about the product called ULIP. In this project we haveProjectsformba.blogspot.com Page 43 of 102
  44. 44. Projectsformba.blogspot.com segregated the people as per their intentions about the ULIP of Standard Chartered. The intentions gathered are divided into the following groups: 1. Definitely would like to take ULIP of Standard Chartered 2. Probably would like to take ULIP of Standard Chartered 3. Undecided 4. Probably would not like to take ULIP of Standard Chartered 5. Definitely would not like to take ULIP of Standard Chartered • Motivation: Through the questionnaire we have tried to find the hidden need or want of an individual and have tried to find if these people can be tapped as the potential customer for Standard Chartered.• Behavior: Behavior concerns what subjects have done or are doing. Through the questionnaire we have tried to find out the behavior of the individuals regarding the product and their responses. If the responses are favorable then the person can be said to be our potential customer. The primary data serves as an important tool to measure the behavioral trend of the customer. It helps in answering some of the vital Questions. Thus, it helps to draw a comparison between the Purchase and the observed behavior of the individuals.Obtaining the Primary Data: The data collection was primarily done through communication. Communication involves questioning respondents to secure the desired information, using a data collection instrument called questionnaire. The questions were in writing and so were the responses.Projectsformba.blogspot.com Page 44 of 102
  45. 45. Projectsformba.blogspot.com Versatility: It is the ability of a technique to collect the information on the many types of primary data of interest to marketers. It has also been found that some of the people do not answer truthfully to all the questions especially in the case of the personal details.Projectsformba.blogspot.com Page 45 of 102
  46. 46. Projectsformba.blogspot.com FINDINGS OF THE STUDY GENERAL FINDINGS• GENDERWISE DISTRIBUTIONAmong the 100 respondents, females represented 28% only. The reason being femalesare generally less active and aware about banking services and investmentoptions.Moreover, during the survey it was revealed that females are less responsive forsuch surveys.Projectsformba.blogspot.com Page 46 of 102
  47. 47. Projectsformba.blogspot.com• AGEWISE DISTRIBUTIONAmong the 100 respondents, maximum respondents are from age group 21-30yrs theycover around 48% of total population.This is because people in this age group are moreresponsive.• OCCUPATION WISE:In total 100 respondents 48% are in private service and 20% of them are in business,th24% of the total pie is owned by the government servant and professional hold theleast i.e 8% of the total sample.• IMPORTANT FACTORS CONSIDERED FOR SAVING ACCOUNT BY CUSTOMERS:Projectsformba.blogspot.com Page 47 of 102
  48. 48. Projectsformba.blogspot.comPeople in general look for quality service from bank and then for a nearby location.Banking hours is also one of the important factor as maximum banks have increasedthere banking hours from 7 -8 hours to 11- 12 hours.• CUSTOMER FOR VARIOUS BANKS :Projectsformba.blogspot.com Page 48 of 102
  49. 49. Projectsformba.blogspot.comThe survey shows that the ICICI bank is the most preferred bank ,covering 28% of thethe total population. The next preferred bank is SBI (21%) and the third most preferredbank is HDFC bank. Standard Chartered bank is preferred by only 7 % of therespondents.The reason for Standard Chartered being the less preferred bank is thatthey are focusing on only premimum segment and average person are still unawareabout the standard chartered bank.Therefore they hesitate to deal with StandardCharterd Bank.• MINIMUM BALANCE MAINTAINED IN SAVING ACCOUNT BY CUSTOMERS:The banking services that are availed by the people at large is ATM. Even with upgradation of technology people prefer using Internet / Phone banking. Doorstepservice has minimum effect, as people do not rely on handing their money to peoplerather they feel much more secured in transacting or transferring their moneythrough any Internet media.Projectsformba.blogspot.com Page 49 of 102
  50. 50. Projectsformba.blogspot.com• SATISFACTION LEVEL OF SAMPLE :In general it is seen that people are satisfied with the services of the bank. Very feware not satisfied with the banking services provided by their bank.• PREFERENCE OF MONEY TRANSACTION : People in general do not like doing money transactions in Cash, as it is not so safeas also sometimes there are problems with the notes. Majority of people preferCheque, Credit card and Debit card usage as it is also easy to carry and it is moresafe.Projectsformba.blogspot.com Page 50 of 102
  51. 51. Projectsformba.blogspot.com• AWARENESS ABOUT THE PRODUCTS OF STANDARD CHARTERED BANK:The Standard Chartered Bank has very poor market coverage and very few people knowabout the products. The market awareness and share is minimum for savingaccount products.Thus I see that maximum people are not aware about the products offered bystandard chartered bank as well as a major amount of people are not even aware orhave not even heard of benefits of the PRODUCTS.so the bank should try to makepeople aware about them.• RISK PREFERNCE OF SAMPLE :Projectsformba.blogspot.com Page 51 of 102
  52. 52. Projectsformba.blogspot.comModerate risk takers are 50%, this shows that they benefit from the Bull Run as well assafe capital.26% represents low risk takers which are due to their old fixated mindset.High risk takers are mostly those in Business who are willing to go an extra mile forReturns. They hold 16% market share.Other 8% with no risk appetite wants to play really safeProjectsformba.blogspot.com Page 52 of 102
  53. 53. Projectsformba.blogspot.com• DISTRIBUTION OF SAMPLE IN ACCORDANCE WITH THE PREFERNCE FOR TIME HORIZON OF INVESTMENTOnly 2% of the total respondents wants to invest for the period of 10-15 yrs.Respondents belong to new breed who do not want to block their money that long.Mostly (50%) they invest for 4-7 yrs to get maximum benefits. It is here that theydouble their amount paid on required first 3 premiums, even after not paying any morepremiums.Those investing for just 3 yrs want to reap benefits from current Bull Run.Investors for 7-10 yrs (8%) have to some obligation materializing in that maturityperiod like daughter marriage etc.Projectsformba.blogspot.com Page 53 of 102
  54. 54. Projectsformba.blogspot.com• AWARENESS ABOUT ULIPs:Out of the sample size of 100, 40% of the respondents are unaware about ULIP.It is here that the potential of ULIP needs to be tapped. They are ready investors whoknow only traditional avenues of Investment. Making them informed would open theInvestments into this Instrument.• GENDERWISE AWARNESS OF ULIPSMales are comparatively more aware about ULIP as an Investment option.Females inIndia are underinsured, they think about Investment mostly into Bullion. A best solutionwould be to pass information to the working women class about the product.Projectsformba.blogspot.com Page 54 of 102
  55. 55. Projectsformba.blogspot.com• INVESTMENT IN ULIPS :In 100 respondents only 40% of them have invested in ULIPS. This shows that there aresome of the people who are though aware of the ULIPS but are not interested in makinginvestment in them. These people should also be taken into consideration to increasethe market share of the bank.• INTERESTED IN INVESTING IN ULIPS:Survey shows that only 16% of the total respondents want to invest in ULIPS.T hisshows that ULIP is not popular among the people. One of the reasons for this isunawareness about ULIPS. The solution to increase the market share and popularity ofthe ULIPS is to make people informed about the benefits of the ULIPS.Projectsformba.blogspot.com Page 55 of 102
  56. 56. Projectsformba.blogspot.com TWO SCALE ANALYSIS: • RELATION BETWEEN INCOME & AGE GROUP (21-30 YRS):Respondents are mostly from above 2 lacks income bracket. They are those who havejoined Private Service shortly i.e. have just started earning or have their own business.They have age by their side with risk taking ability, so besides ULIP they have otherInvestment avenues also with them like Mutual Funds, Stock Market etc. The importantreason for their preference toward ULIPs is tax benefit.Up to 2 lacks income level represents mostly, who are in initial stages of their jobs andthe reason for their interest in ULIPS is income growth.Projectsformba.blogspot.com Page 56 of 102
  57. 57. Projectsformba.blogspot.com• RELATION BETWEEN INCOME & AGE GROUP (31-40 YRS):For age group 31-40, majority of respondents have income between 3-5 lacks or above5 lacks. This age group comprises of people who have long term responsibilities, theseare the people who are interested in investment in for their future security as well asincome group. This age group should be focused continuously and sincerely.Projectsformba.blogspot.com Page 57 of 102
  58. 58. Projectsformba.blogspot.com• RELATION BETWEEN INCOME LEVEL & AGE GROUP (41-50 YRS) :In age group 41-50 yrs majority of people i.e around 45% have income in between 2-3lacks. The next income groups are people who are earning in between 3-5 lacks orabove 5 lacks. Only 11% respondents are earning up to 2 lacks.• RELATION BETWEEN INCOME & AGE GROUP (ABOVE 50 YRS) :Projectsformba.blogspot.com Page 58 of 102
  59. 59. Projectsformba.blogspot.comRespondents from age group above 50 yrs are majorly from the income group 3-5 lacks.In this age category no one of the total respondents are earning above 5 lacks. This isbecause in this age group majority of them are government employee. Governmentemployees have low income and they are not interested in risky investment.RELATION BETWEEN RISK PREFERENCE & AGE GROUP (21-30YRS) :One thing is quiet clear that low risk takers are in minority, age has very littlesignificance.Survey shows that respondents prefer ULIP with a motive to have better returns.High risk takers are willing to experiment with returns that accrue from the Market Bullrun.Moderate risk takers want to play safe with a balanced fund allocation in theirInvestment basket.No risk takers have altogether a new theory. They invest into it mostly to have taxrebate.Projectsformba.blogspot.com Page 59 of 102
  60. 60. Projectsformba.blogspot.com• RELATION BETWEEN RISK PREFERNCE & AGE GROUP (31-40 YRS) :With this age Investors are more sensitive to risk, so they tends to be moderately riskskewed.But still high risk takers are there who want Income growth & other benefits.Low & no risk takers are still in minority.Projectsformba.blogspot.com Page 60 of 102
  61. 61. Projectsformba.blogspot.comSame trend is followed here also but the only difference is that No risk takers haveincreased from last category and high risk taker are less because there age don’t allowthem to go for risky ventures.The reason is attributed to fact that with this age they want safety for their money dueto family obligations arising.• RELATION BETWEEN RISK PREFERENCE & AGE GROUP (ABOVE 50 YRS):Same applies to those above 50 yrs, but risk taking ability has reduced by a greatextent. They do not want risk over their hard earned money, so they want to play safe.Therefore they prefer low risk investment.Projectsformba.blogspot.com Page 61 of 102
  62. 62. Projectsformba.blogspot.com• RELATION BETWEEN RISK PREFERENCE &OCCUPATION (BUSINESS)Survey shows that the business class people are more ready to take risk; around 60 %of business people from the total sample population have preference for high risk andhigh return investment. Therefore for risky investment schemes business people shouldbe focussed.RELATION BETWEEN RISK PREFERNCE & OCCUPATION (PRIVATE SERVICE):Projectsformba.blogspot.com Page 62 of 102
  63. 63. Projectsformba.blogspot.comResondents who are in private service are moderate risk taker.They invest for theirincome growth but their risk apetite is very low , only 8% of the respondents fromprivate service are ready to go for high risk ventures.• RELATION BETWEEN RISKPREFERENCE & OCCUPATION ( GOVERNMENT SERVICE)Survey shows that government employees are totally different to high risk, moreoverthey are interested in investing on those instruments which have low risk or no risk atall.Projectsformba.blogspot.com Page 63 of 102
  64. 64. Projectsformba.blogspot.com• RELATION BETWEEN RISK PREFERENCE & OCCUPATION ( PROFESSION):Survey shows that professional are also more inclined towards those instruments whichhave moderate risk or low risk.They neither want to go for high risk nor for no riskventures.• RELATION BETWEEN RISK PREFERENCE & GENDER :Projectsformba.blogspot.com Page 64 of 102
  65. 65. Projectsformba.blogspot.comSurvey shows that althogh most of the respondents prefer moderate risk and moderatereturn strategy but in that too females are less prone to risky investments. Only 7 % oftotal female respondents are interested to go for high risk investment.therefore , ulipswould be more popular among male as compared to female.• VARIOUS AVENUES OF INVESTMENT :Survey shows that FDs are most popular among the respondents, around 24% of thetotal sample population invest in them. In case of ULIPs, only 11% of the totalrespondents are investing, and that investment is also due to its tax benefit.Projectsformba.blogspot.com Page 65 of 102
  66. 66. Projectsformba.blogspot.com• REASONS FOR INVESTMENT :Survey shows that income growth is the prime reason for the investment, 44% of therespondents invest for income growth, the second next reason for the investment is taxrebate, comprises of 33% of the total respondents. Thus, these two benefits can act asstrong motivator for attracting people for investment for ULIPs.• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (21-30 YRS) :Projectsformba.blogspot.com Page 66 of 102
  67. 67. Projectsformba.blogspot.comIt is in time frame of 4-7 yrs that respondents feel that their Investment would doubleat the prevalent rate of return.Suppose that an investor invests Rs. 1 lack p.a. as premium at a rate of return of 20%for 3 yrs, then his total premium paid gets doubled in almost five & half yrs.Those investing for less than 3 yrs wants just Tax rebate.Investors investing for 7-10 yrs want Income growth besides other benefits.• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (31-40 YRS) :Respondents here are serious Investors who view ULIP as one of the potentialInvestment option. But a little has changed from the last graphical presentation asinvestors still think that 4-7 yrs is the best time frame for Investment.Investors investing below 3 yrs have reduced. They are usually small Income earnerswho want more than one benifts.7-10 yrs bracket are those with family obligations.Projectsformba.blogspot.com Page 67 of 102
  68. 68. Projectsformba.blogspot.com• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (41-50 YRS):Same trend is followed here .Only 11% of the total Respondents at this age want toblock their money for time period more than 10-15 yrs.• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (>50 YRS):Projectsformba.blogspot.com Page 68 of 102
  69. 69. Projectsformba.blogspot.comRest of the time frame categories has followed the same trend. Same trend is followedhere with a little difference that is there being no investors over 7 yrs time frame.Respondents at this age do not want to block their money for time period more than 7yrs.• RELATION BETWEEN INCOME LEVEL& TIME HORIZON ( UPTO 3YRS) :Those with Income level 2-3 lacks & 3-5 lacks usually invest for time frame less than 3yrs because they are mostly young working executive class who want Tax rebate at oneend & also do not want to block their money for long.25% of total respondents earningmore than 5 lacks invest for less than 3yrs.Projectsformba.blogspot.com Page 69 of 102
  70. 70. Projectsformba.blogspot.com• RELATION BETWEEN INCOME LEVEL & TIME HORIZON ( 4-7 YRS) :Income level above 5 lacs is the dominant category in this graphical representation. Taxrebate & Income growth is their requirement.• RELATION BETWEEN INCOME LEVEL & TIME HORIZON (7-10 YRS)Same trend is followed here also.Projectsformba.blogspot.com Page 70 of 102
  71. 71. Projectsformba.blogspot.comThose upto 2 lacs Income level wants their child’s marriage as the main benefit.5-7 lacs Income bracket wants continued tax rebate &2-5 lacs Income bracket wants bundle of all possible benefits.• RELATION BETWEEN INCOME LEVEL & TIME HORIZON (10-15 YRS) :Those upto 2 lacs want pension security.For 2-5 lacs, respondents want child education as chief benefit.Those above 5 lacs wants continued Income growth spread over given time frame.Projectsformba.blogspot.com Page 71 of 102
  72. 72. Projectsformba.blogspot.com• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL (UPTO 2 LACS):It includes businessmen and Private servicemen.34% of the samples in this category are moderate risk takers. They are usually over 30yrs & average Investment horizon being above 3 yrs.There are no high risk takers respondents in this income group; as their income is less.The low risk takers want maximum safety for their Investment so they prefer only fundallocation into debt & Govt. bonds with mostly time frame less than 3 yrs.There is a strange behavior among No risk takers i.e. they are young with flavor forIncome growth but are extremely risk averse.• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL (2- 3 LACS):Projectsformba.blogspot.com Page 72 of 102
  73. 73. Projectsformba.blogspot.comStrangely in this block also respondents seem risk averse as they demand no risk.But there is also a large representation of moderate risk takers who want wholesomebenefits such as 2 in 1, Tax rebate, Income growth etc.Tax rebate seems to be the ultimate pick for the High risk seekers. Their behavior ispredictable as they are either in Business or Private Service. They go beyond traditionalplayers & rely on new players in market.• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL ( 3-5 LACS)Projectsformba.blogspot.com Page 73 of 102
  74. 74. Projectsformba.blogspot.comAround 35% of total population is moderate risk takers. They are either in Business orPrivate Service who can park in funds for more than 5 yrs. They usually go for big sizeInsurance cover. ULIP is an ideal Investment option for them because they wanted tostay afloat for long with maximum of benefits.High risk takers also follow the same trend demanding Tax rebate as the majorincentive.Low risk takers are 41%, and they are investors who only want traditional Insurancecover. This class consist only Private servicemen.• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL ( ABOVE 5 LACS):High risk takers at this Income level want Income growth over continuous period oftime. So they invest for long time.Respondents over 40 yrs stay on either No risk or Low risk zone only.Projectsformba.blogspot.com Page 74 of 102
  75. 75. Projectsformba.blogspot.com• AGEWISE PREFERNCE OF THE REASONS FOR THE INVESTMENT :In the age group 21-30 yrs, most of the respondents want Tax rebate & Incomegrowth.Other benefits come second in importance.Age group 31-40 yrs prefer besides above two also child’s education. This shows thatinvestors in this age group are more family oriented & value ULIP investment crucial forsocial obligations. For them pension is least fanciful. This age group is well dispersed(excluding pension).Age group 41-50 yrs also prefers Tax rebate & Income growth with little of all othersalso as per respondent’s preference of benefits.Respondents over 50 yrs stick to tax rebate or pension and child education as benefitalsoshows family responsibility as a major motivator for investment• INCOME WISE PREFERENCE OF THE REASONS FOR INVESTMENT :Projectsformba.blogspot.com Page 75 of 102
  76. 76. Projectsformba.blogspot.comFor Income level upto 2 lacs, Income growth is of paramount importance among allbenefits that ULIP offers. They are mostly young people. People from Income level 2-3lacs gives importance to Tax rebate and income growth. They come mostly from PrivateService & Business category. For them pension is still the least fanciful benefit besidesall others.Income level 3-5 lacs are also tax rebate and income growth mongers Rest benefits aregiven less of importance.Income level above 5 lacs also follow the same psyche of Income growth & Tax rebate.Moreover they also invest for child education.Projectsformba.blogspot.com Page 76 of 102
  77. 77. Projectsformba.blogspot.com ESTIMATION OF MARKET POTENTIAL USING Z-TESTIn order to estimate the population proportion who were interested in ULIP I am usingZ-test and during this I have taken a confidence level of 95% to determine thepopulation proportion. I have taken an assumption in this also because it was verydifficult for me to take the original data from the new census report i.e. many of theincome information is included in that report and also the population proportion which Iam calculating is for the whole of population but our sample starts from 20 years sothese calculations are according to whole population.P = Population Proportionp^= Sample Proportion=%age who are interestedq^= (1-p^)n= Size of SampleConfidence Level =95%Z at 95% = 1.96By Using the Formula for Z-Test i.e. p^ q^ P = p^ ± Z nP^ = % age who are interested =40/100=40q^ = 60z= 1.96 40 * 60p= 40 ±1.96 100 = 40 1.96= 40 1.96 4.9=40P = {30.39%, 49.60%}Therefore ULIP can be found popular among 30.39 % to 49.60 % of population above21 years of age and above 2 lacs income group in NCR region.Projectsformba.blogspot.com Page 77 of 102
  78. 78. Projectsformba.blogspot.com CONCLUSION ABOUT MARKET POTENTIAL OF ULIPS 1. Trust needs to be developed among the customers both as far as the ULIP as a product is concerned and also regarding private players (Standard Chartered) particularly in our study. 2. Some respondents despite of knowing about ULIP were hesitant to talk on it because they were not too confident about their knowledge. This very fact completely declines the concept of providing switches as a lucrative feature in ULIP (which is done by most of the companies). The reason is that very rarely people have the ability or time to use these features. 3. The important facts which we could conclude from our data regarding the buying behavior of individuals are that people give maximum importance to the tax benefit that they receive after investing in the unit linked insurance plan .Further the next most attractive benefit that people look forward to most as per our sample is that of income growth. In fact most of the unmarried chunk of our population who has no liabilities like child education or marriage goes in for a ULIP product just to multiply the money in a couple of years. Other benefits are important as well but these two take away most of the attention. 4. Regarding the acceptance of ULIP as a product over other investments it is analyzed that though a lot of our sample population was aware about it and had invested in it but still a lot of them (including Females) wanted to invest in it but were confused regarding other options like mutual funds. So a lack of public awareness was encountered. 5. Another important finding was that time horizon was one of the factors of concern while investing in ULIP and as per the analysis of the questionnaire we found that a large proportion of our sample was convenient with the time period of 4-7 years and then others were in favor of a period not beyond 3 years. This implies that very less number of people were comfortable with long time horizons. 6. Another very interesting finding from our data is that when we talk about risk as an investment criterion then the female population which already has or is interested in investing would favor either no risk at all or low risk and low gain. Whereas the customers’ businessmen by occupation and specifically from age group 21- 30 would favor either moderate risk and moderate gain or rather go for a high risk and high gain strategy. This result came completely in line with our expectations.Projectsformba.blogspot.com Page 78 of 102

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